After several consecutive sessions of intense declines, the soybean market is catching its breath on the Chicago Board of Trade (CBOT) this Wednesday (31st). By around 8:25 am (Brasília time), prices were up between 8.25 and 20.75 points, in a technical correction movement. As a result, the August contract was at $10.48, and the more actively traded November contract was at $10.30 per bushel.
Currently, there aren't any strong factors to sustain a long-term rally in soybean prices, but the market is experiencing a correction based on well-known scenarios among traders. According to analysts and market consultants, this observed movement on Wednesday may be fragile and short-lived.
Ultimately, the favorable weather conditions in the American Midwest continue to support the progress of the 2024/25 crop, and the demand for US soybeans remains slow, which is the central focus of the market in the US at the moment. The recovery in prices is also benefiting soybean oil futures and, more significantly, soybean meal, which is helping to drive grain gains on the CBOT.
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